Halliburton Reports That Increased Frac Volumes from Niobrara Well Design Activities are Creating Logistical Bottlenecks

Halliburton LogoAt Barclays CEO Energy-Power Conference held on September 2, 2014, Halliburton’s management reported that the service company was experiencing increased frac volumes due to the intensity of Niobrara and Bakken well design enhancements.

The increased frac volumes had the effect of soaking up excess fracking crew capacity, as well as presenting logistical challenges in delivering enough frac sand to sites with the existing rail infrastructure.  Halliburton’s slides from the conference implied that well redesign had increased frac sand consumption from 20 rail cars to 75 rail cars per well in the Niobrara and Bakken plays.

Sand Sorting Tower

Sand Sorting Tower

In order to address the rail infrastructure challenges, the company said that is was “expanding our transloading facility” to address “bottlenecks in rail going into the Bakken and Niobrara.”

Management explained that they have added about 25 to 30 new trucking companies that they are working with to better move supplies from the transloading facilities to the wellhead itself.

Management is “very excited about North America. Things are going very, very well. And we continue to hold to our projections about what’s happening on the revenue front, and from the profitability front as well, when we look at on an overall basis.”

Frac Fact: 1 Railcar can carry 100 Metric Tons of frac sandSource RBN Energy

Read the full transcript of Halliburton Management’s transcript from the Barclays CEO Energy-Power Conference at Seeking Alpha

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